Hot Inflation Data • Stocks Slump • REIT Dividend Hikes

February 24, 2023 | Hoya Capital

Hot Inflation Data • Stocks Slump • REIT Dividend Hikes Real Estate Daily Recap Feb 24 Written By U.S. equity markets remained under-pressure Friday - concluding their worst week since December - after hotter-than-expected inflation and spending data lifted benchmark interest rates to three-month highs. Pushing its full-week decline to roughly 3%, the S&P 500 slid 1.1% today while the tech-heavy Nasdaq 100 dipped nearly 2%. The Dow dipped 337 points.

Real estate equities also were lower today as rate pressures offset a generally strong slate of earnings reports and dividend hikes. Equity REITs slipped 1.7% while mortgage REITs declined 1.5%. Four more REITs raised their dividends over the past 24 hours - Prologis, Lamar, Essex, and Gaming & Leisure Properties - bringing the full-year total to 32 REIT dividend hikes. The strong earnings season for storage and residential REITs continued.

CubeSmart (CUBE) rallied 4% after reporting better-than-expected results, noting that its full-year FFO increased by 19.9% in 2022 and sees FFO growth of another 5.7% in 2023. Income Builder Daily Recap U.S. equity markets remained under-pressure Friday - concluding their worst week since December - after hotter-than-expected inflation and spending data lifted benchmark interest rates to three-month highs. Pushing its full-week decline to roughly 3%, the S&P 500 slid 1.1% today while the tech-heavy Nasdaq 100 dipped nearly 2%.

The Dow dipped 337 points. The 10-Year Treasury Yield climbed 7 basis points to 3.95% today after PCE inflation data - the Fed's preferred inflation gauge - showed an unexpected reacceleration in price pressures in January. Real estate equities were lower as well today as rate pressures offset a generally strong slate of earnings reports and dividend hikes over the past 24 hours. The Equity REIT Index declined 1.7% today with 17-of-18 property sectors in negative territory.

The Mortgage REIT Index slipped 1.5% while Homebuilders declined 1%. Real Estate Daily Recap Best & Worst Performance Today Across the REIT Sector ...